After reportedly being close to a deal to return to the Mavericks, Jason Kidd has decided to leave Dallas and join the New York Knicks, ESPN.com’s Marc Stein reports.

The Knicks lost out on Steve Nash, who was been dealt from the Phoenix Suns to the L.A. Lakers on Wednesday. Kidd, evidently, was the next point guard on their list. They also reportedly had Raymond Felton in their sights.

Veteran point guard Jason Kidd has decided to leave the Dallas Mavericks and sign with the New York Knicks. (AP Photo)

The Knicks also are expected to match the offer Jeremy Lin received from the Houston Rockets.

While the Mavericks thought they had a deal wrapped up with Kidd, the Knicks convinced the 18-year veteran to come to New York to help them get over the hump in the Eastern Conference while mentoring Lin, according to Stein.

Losing Kidd marks another blow to the Mavericks’ difficult offseason. Their top free-agent target, Deron Williams, decided to re-sign with the Brooklyn Nets, and Jason Terry is on his way to the Boston Celtics.

The Mavericks have just seven veterans under contract and three rookies from last month’s draft, the Dallas Morning News notes. Kidd may go to New York via a sign-and-trade, but it's unlikely that Dallas will get Steve Novak or Iman Shumpert in return.

But Dallas wants to maintain salary cap flexibility, even if that means waiting until next summer, when Dwight Howard and Chris Paul both are slated to become free agents, to make major moves. The Mavs, according to Stein, refused to get into a bidding war for a point guard, sitting by as the Rockets floated an offer to Lin, and the Suns agreed to a $34 million deal with Goran Dragic.